The Ministry of Public Enterprise Sector will finalise its textile sector reforms within 30 months with a total cost of EGP 21bn, the Minister of Public Enterprise Sector, Hisham Tawfik, said on Tuesday.
It came during the minister’s participation in the event which was organised by the American Chamber of Commerce in Egypt (AmCham Egypt), entitled ‘State-owned enterprises: reform plans and opportunities for the private sector.’
Forty-eight companies are loss-making and 90% of the losses are resulting from 26 companies, the minister added, noting, “We have to admit the losses and be courageous in how to deal with the situation.”
Companies operating in the insurance, transport, and real estate sectors are profit-making companies, he remarked, noting that the ministry will double its profits to EGP 20bn within a couple of years from only the current EGP 11bn.
The minister said that his ministry is conducting a full assessment of its companies and seeks to partner with the private sector for the beneficial management of the companies, adding that loss-making companies are implementing plans to reduce the losses.
He also declared that the ministry will hold a conference on 26 June to announce the plans of bridging Egypt’s Ain Sokhna city with east Africa, with the aim of promoting access of Egyptian exports to African markets.
Furthermore, the minister reasserted the government’s commitment of continuing its initial public offering (IPO) programme, adding that the ministry seeks to partner with international brands including Bata international and other brands for Al Nasr Automobile company.
Management is key for enhancing the performance of public enterprises, the minister reasserted, noting that there are about 250,000 employees in public enterprises and the ministry seeks to develop their skills.
Additionally, the recent door-knock to the United States is the most successful since long time ago, Tarek Tawfik, president of AmCham Egypt, said, highlighting that the mission had more than 90 meetings during its visit, including businesspersons, state department representatives and congressmen.
Tawfik welcomed the government’s efforts to include the private sector dynamics in its IPOs.
For her part, Sylvia Menassa, CEO of the AmCham Egypt, said that the chamber will organise a couple of events next month on 13 and 15 May, explaining that the mid-May event will present a World Bank report on women’s empowerment.